SHANGHAI, Feb. 24 (SMM) – On Friday, SHFE 1704 aluminum started at RMB 13,555/mt and then advanced to RMB 13,870/mt with shorts taking profits. During the afternoon trading, SHFE 1704 aluminum declined gradually with exit of longs and closed at RMB 13,715/mt. Trading volumes were up to 350,992 lots and positions were down 16,910 to 273,230. Positions of SHFE 1705 aluminum increased 13,224 to 206,456 and the contract found support at the 40-day moving average. Positions of all SHFE aluminum contracts dropped to 699,000 from 744,000 seen before 2017 Chinese New Year holiday.

There is still a room for SHFE 1704 aluminum to drop but is limited. The contract will find support at the RMB 13,500/mt.